On 31 October 2018, Mighty Earth released the Rapid Response Report 9. The reports states that Apical was among the traders sourcing from Mulia Sawit Group (MSAL) whose subsidiary, PT Persada Era Agro Kencana (PT PEAK) is implicated in the clearance of 129 ha of peat forest between 27 August 2018 to 25 September 2018. According to the report, MSAL supplied to Apical from other mills but not directly from PT PEAK.
On 29 November 2018, Mighty Earth released a Rapid Response 10. The report alleged that between 27 August 2018 to 31 October 2018, 383 ha of peat were cleared.
5 November 2018:
Apical demanded clarification from MSAL on the alleged peat forest clearance by PT PEAK.
8 November 2018:
MSAL responded claiming that they have acted in compliance with all governmental requirements with regards to the development of the area mentioned in the report.
Apical has decided to engage further with MSAL to investigate and gather more information on the allegation.
30 November 2018:
Apical met up with MSAL’s management to discuss the allegations and the next course of action required to address the issues.
6 December 2018:
Apical met with MSAL and provide recommendations to MSAL in order to comply with Apical sustainability policy. The recommendations are to stop land clearing, conduct the peat analysis study as well as to come out with NDPE policy and to build the 100% traceability to plantation.
Apical will monitor the progress.
On 19 December 2018, MSAL responded that they completed the study in 2011 and HCV assessment in 2016 with Fakultas Kehutanan IPB Bogor. Apical demanded MSAL to give clear commitment on the recommendations.
MSAL responded that they’re unable to commit such actions due to business reasons. However, MSAL willing to further engage with Apical in resolution of the matter.
Apical temporary put on hold sourcing from MSAL and to continue engage MSAL to resolve the issue.